A loan company was loan applicants a particular insurance company, which in turn paid the loan company a referral fee. This is:
A) Illegal, since the Real Estate Procedures Act prohibits kickbacks.
B) Acceptable, as long as the insurance company is reputable.
C) Legal, since it is a common industry practice.
D) Permissible, if both parties disclose the referral fee to the loan applicants.

Q&A Education